I was wondering the same thing about by-passing the Tel-A-Depth spool valve. Disclaimer: I'm by no means a mechanic or tractor expert. You might be able to use one of the other valves by running a long hydraulic hose back to the quick hitch ram. Maybe one of the pros on here can answer that question better than I. The only thing is that that diff. gear set up is a self adjustment device. IH had a problem with their Tel-A-Depth system loosing pressure and lowering on its own. Not real good if you're plowing, disking, etc. I suppose the front end of the tractor could come up off the ground if it wasn't heavy enough.
You'll be very happy you got that shop manual. I bought mine when I was going through this issue as well. The I & T manual just wasn't making sense and at times seemed to contradict itself. The picture even showed the gears in the wrong final position. Man, I had one heck of a time with those things. The day after I got that manual I opened it up, looked at the picture, spent about 2 minutes changing the gears and spool position and WHALLA!
Make sure you read through that section of the book a couple of times before you do anything. Important: This is key--You have to be sure all the gears and levers are indexed before you take anything apart on that valve. Take pictures for reference with your phone or digital camera. You'll be glad you did.
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